Why small companies want a nationwide paid family and medical depart program

. It is a struggle for small businesses to recruit and retain employees as they compete with large companies that have the market power to provide significant advantages. (Image: Shutterstock)

I was thrilled to hear President Joe Biden described his proposal for a paid national vacation as part of his American family plan. When I expressed my enthusiasm for Biden’s proposal, the reaction of many was, “I thought small businesses were against this kind of national policy.” I am frustrated that this widespread misjudgment is continuing. At the Senate Health, Education, Labor and Pensions hearing on May 18, 2021, some politicians and paid lobbyists also voiced concerns about the burden of national policy on small businesses.

Related: Addressing the Growing Crisis of the Paid Family and Sick Leave

As the founder and CEO of a small family-focused company with employees in five states, I firmly believe that a nationwide paid family and sick leave program would be a huge win for small businesses across the country. I am not alone in my support as a small business owner for a nationwide vacation policy. At least two-thirds of small business owners across the country support such a program. That’s why I support a nationwide paid vacation program:

It improves the bottom line for small businesses

A national paid family and sick leave program would improve the bottom line of small businesses. At UrbanSitter, we use the California FMLA as the standard for our vacation policy. For employees in four other states, we had to adjust each employee’s vacation to different government support and then add it as needed. This was a challenge for a small business, not to mention the high cost, but we believe it was the right one. A nationwide paid vacation program would cover a large portion of the costs we bear so we can invest that money in growth opportunities for our business or provide temporary coverage to ensure business continuity while the employee is away. Both effects would lead to additional productivity and job creation.

Small businesses across the board could see cost savings, reduced sales, and improved work ethic. Studies show that those who take paid vacation are more likely to return to the same employer than those without paid vacation. In my state, studies of Calforina’s FMLA showed that 99% of employers surveyed said that paid vacation had a positive or neutral impact on work ethic.

Let’s balance the playing field between big and small

The creation of a national vacation regime would also begin to fill the gap in the benefits offered by large corporations and small businesses. It is a struggle for small businesses to recruit and retain employees as they compete with large companies that have the market power to provide significant advantages. Jimmy Carter said, “America has always been a land of innovation and dynamism, of entrepreneurship.”

In my opinion, small businesses can drive innovation and creativity faster and more effectively than large organizations. I’ve seen some of the brightest, most innovative people turn down their dream small business jobs to accept (or stay) a job in a large company just because they are worried about a child or an older family member going to need them. With more than 73% of employees in the United States caring for a child, parent, or friend, this isn’t a niche segment of employees who are forced to compromise.

It is a step towards equality

The ultimate reason I support a national paid leave program is that it will improve equality in our country. The fact is, women still do most of the caregiving and are more likely to suffer from care-related work interruptions that ultimately affect career advancement and income. Paid leave increases the likelihood that women will return to work. In addition, the racial wealth gap means that color employees and small business owners have less financial cushion to take time out. A paid vacation program would be the catalyst our country needs to close the race and wealth gap.

The time is now

COVID has drawn attention to the acute need of employees for paid family and sick leave. I believe a positive, unintended consequence of this timely attention is that it has brought to light the underlying and long-standing chronic need for a paid vacation system. Employees who are caregivers have often taken this burden unnoticed. Employers and politicians are now keenly aware of the need for a nationwide vacation policy for American workers. We have a president who supports this type of policy and the bipartisan support to enforce it. Let’s act now to empower the families and communities that support hundreds of thousands of small businesses like mine.

Lynn Perkins is the founder and CEO of UrbanSitter. She is also the co-founder of FamTech, an organization of over 160 founders that develops future-oriented solutions for all families.

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